Operating Revenue

12 Months Ended

Dec. 31, 2019

Text block [abstract]

Operating Revenue

4 OPERATING REVENUE

	2019		2018		2017
	Million		Million		Million
Revenue from telecommunications services
Voice services		88,624		108,083		156,918
Data services
-SMS & MMS		28,648		28,800		28,058
-Wireless data traffic		384,999		383,297		364,906
-Wireline broadband		68,835		54,285		39,731
-Applications and information services		82,543		75,701		60,655
Others		20,743		20,741		18,083
		674,392		670,907		668,351
Revenue from sales of products and others		71,525		65,912		72,163
		745,917		736,819		740,514

The majority of the Group’s operating revenue is from contracts with customers, the remaining is not material.

(a) Assets related to contracts with customers

The Group has recognized the following assets related to contract with customers:

				As of			As of
	Note			December 31, 2019			December 31, 2018
				Million			Million
Contract assets		(i	)		6,567			6,489
Less: current portion					(5,003	)		(5,022	)
Non-current portion recorded in other non-current assets					1,564			1,467
Contract costs recorded in other non-current assets		(ii	)		15,987			6,975
Other non-current assets					17,551			8,442

Note:

(i) Changes in contract assets:

	Contract assets
	Gross amount			Loss allowance
	Million			Million
As of January 1, 2019		6,831			(342	)
Increase resulting from satisfaction of performance obligation		6,886			—
Reclassified to accounts receivable		(6,834	)		—
Net impairment loss of contract assets		—			26
As of December 31, 2019		6,883			(316	)

(ii) Changes in contract costs

	Contract costs
	2019			2018
	Million			Million
As of January 1		6,975			4,954
Addition		24,149			9,711
Amortization for the year		(15,137	)		(7,690	)
As of December 31		15,987			6,975

Contract costs primarily include sales commissions payable to third party agents and costs related to connecting a customer to the Group’s network for the provision of telecommunications services. The increase of contract costs was mainly due to the Group’s continuing investment in the industrial informatization and household market.

(b) Details of contract liabilities

Contract liabilities are presented in deferred revenue in the consolidated balance sheets. Changes in contract liabilities are as follows:

	Contract liabilities
	2019			2018
	Million			Million
As of January 1		62,812			81,147
Opening balance recognized in the consolidated statement of comprehensive income for the year		(56,409	)		(66,370	)
Other changes for the year		51,028			48,035
As of December 31		57,431			62,812

(c) Unsatisfied long-term contracts

The unsatisfied performance obligation of the Group is mainly relating to telecommunications services. The Group generally enters into service contracts with customers monthly or for a fixed term, and bills the customers on monthly basis based on the contract terms for the Group’s unconditional right to consideration. For the contracts that have an original expected duration of one year or less and the performance obligations which are regarded as satisfied as billed, the Group has applied the practical expedient permitted under IFRS 15, therefore, the information about the remaining performance obligations were not disclosed.